B2B , B2C and C2C Business Models

There are different business models that are also included in the trade ecosystem and differentiated according to their parties. These models, which are frequently mentioned in business life; They are called B2B, B2C, and C2C. Each of these models has certain advantages and disadvantages in terms of operation. So what are B2B, B2C and C2C? What are the advantages and differences of these models? You can review our article to learn more about these business models.

What is B2B Business Model?

B2B, which is the short version of "business to business" in English, is the general name of marketing and sales practices between companies. Companies that are actively involved in the B2B model, which is used as "from company to company" in Turkish, generally work with the principle of improving the service they offer to each other. Companies operating in this model act to serve and sell to different companies, not customers.

Business model from company to company; It covers the business between the manufacturer and the wholesaler, between the wholesaler and the retailer, or between the manufacturer and the supplier. Raw material trade, operational collaborations, wholesaler-retailer sales can be given as examples of this model. B2B, which is a practical business model, is very popular in our country as well as all over the world. In parallel with the fact that China is the country that uses this model the most in the world, Alibaba, the world-famous e-commerce company, comes to the fore among B2B sites. In our country, Migros and Tekzen are among the companies that use the business to business model. Advertising agencies and software companies are also among the types of companies that often prefer this model.

What are the Advantages of B2B Business Model?

The advantages of the business to business model can be listed as follows:

Access to product and information without any intermediary,
The chance to receive and evaluate requests more quickly,
Having many alternatives in supplier selection,
Reducing or eliminating bureaucratic processes and procedures,
Opportunity to reach not only the local but also the global market,
Possibility to reduce purchasing costs and increase customer satisfaction,
Possibility to facilitate the presentation and follow-up of products.

What is the B2C Business Model?

In the B2C business model, which can be described as "business to consumer", companies offer their products and services directly to the consumer. For example, personal purchases from e-Commerce platforms are included in the B2C business model. With the business-to-consumer business model, products, contracts, services and subscriptions can be sold.

In the B2C model, companies need marketing activities. For this reason, marketing activities suitable for the target audience and a large customer list are indispensable for companies using this model. The most popular global examples for B2C companies are Amazon, Netflix and Spotify; Trendyol, Hepsiburada and N11 can be given as examples from our country.

What are the Advantages of B2C Business Model?

The advantages of the business to consumer model can be listed as follows:

Possibility to take orders 24/7,
Opportunity to sell worldwide, not just in one country,
The ability to reach thousands of products with one click and make quick sales,
Chance to generate more sales by offering complementary products,
Easy shopping opportunity for visitors with the category system,
Chance to eliminate additional costs and reduce costs,
The ability to prevent products from being out of stock with special campaigns and discount opportunities.

What is the C2C Business Model?

C2C, which is called “consumer to consumer”, refers to the commercial relationship that consumers form with each other. In the C2C business model that emerged with the spread of e-commerce, consumers sell their products to other consumers through certain marketplaces. In this model, the consumer selling directly determines the price himself.

The C2C business model is a method that everyone can use by applying their own marketing strategies. Consumers can sell their new or second-hand products through virtual platforms. The most popular example of the consumer to consumer model in the world is eBay. Among the C2C sites in our country are companies such as sahibinden and LetGo.

There are some differences between B2B, B2C and C2C business models due to the different parties they address. The difference in the reactions of the people on the seller or buyer side and the businesses causes these three models to diverge from each other and display different characters in terms of operation. For example, in the B2B business model, the commercial nature of both parties provides a benefit-oriented workflow, while in other methods, the emotions of the consumers and their purchasing tendencies come into play. In order to better understand the pros and cons of all three methods, it is necessary to look at the differences between them.

What are the Differences Between B2B and B2C?

The differences between B2B and B2C models can be listed as follows:

In the B2B model, the parties evaluate logically, while in the B2C customers act by using their emotions in the decision process.
Continuity in B2B business model is much higher than B2C.
In the B2B model, the product price and contract conditions are more flexible, while the B2C has the obligation to fully comply with the terms.
In the B2B model, the decision-makers' being in the status of a firm extends the signature and approval process, while in the B2C the shopping process ends in a short time in line with the determined provisions.

What are the Differences Between B2C and C2C?

The differences between B2C and C2C are as follows:

In B2C business model, one of the parties is a legal person, in C2C, both parties are natural persons.
While shopping is made in accordance with the sales policies announced in writing in the B2C model, in C2C it is based on the trust of the person.
In B2C, there is no bargaining between the parties. In the C2C model, the parties have the chance to negotiate terms and prices with each other.

What are the Differences Between B2B and C2C?

The differences between B2B and C2C business model are:

In the B2B model, both parties are legal entities and the business proceeds through legal documents. In C2C, the shopping process can be completed without the need for legal documents.
While the traditional pricing system is preferred due to cost and profit based pricing in the B2B model, there is no obligation to follow the traditional pricing system in C2C.
In B2B, the trade volume is higher, while in C2C it is lower as the products and services currently used are sold.
In the B2B business model, there should be large organizations for sales, while in C2C, even one person is sufficient for sales.